Equity Inns Closes the Purchase of Three Marriott Branded Hotels; Company Also Completes the Sale of Three Non-Strategic Assets
August 17 2006 - 6:00AM
Business Wire
Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate
investment trust (REIT), today announced the completion of the
purchase of three hotels, previously announced on July 27, 2006.
The three hotels have a combined 378 rooms and were purchased for
approximately $69,000 per key. Two of the hotels are SpringHill
Suites by Marriott located in the Texas markets of San Antonio and
Houston, while the third is a Fairfield Inn & Suites located in
Atlanta (Vinings) directly across from Home Depot's world
headquarters. In separate transactions, Equity Inns, sold two 20
year-old Hampton Inn properties. The Company sold its 132-room
Hampton Inn Denver (Aurora), Colorado for $3.8 million, which
equates to an average cap rate of approximately 2.9% based upon
trailing twelve months net operating income. This property will be
removed from the Hampton system. The other hotel sold by the
Company is a 122-room property located in North Little Rock,
Arkansas and was sold for a total price of $4.4 million or a cap
rate of approximately 7.7% based upon the property's trailing
twelve months net operating income. The sale of both of these
properties is consistent with Equity Inns' continued focus on
upgrading the Company's portfolio with newer, higher growth
potential assets while disposing of non-core, older hotels. The
Company also sold a 3.5 acre land tract that it owned in the Salt
Lake City suburb of Sandy, Utah for $2.0 million. The Company
originally bought the land in 1999 for the purpose of developing a
200 room Marriott Hotel. Due to market and economic feasibility
issues in the area, the Company opted to sell the land rather than
pursue its development. About Equity Inns Equity Inns, Inc. is a
self-advised REIT that focuses on the upscale extended stay,
all-suite and midscale limited-service segments of the hotel
industry. The Company, which ranks as the third largest hotel REIT
based on number of hotels, currently owns 127 hotels with 15,215
rooms located in 35 states. For more information about Equity Inns,
visit the Company's Web site at www.equityinns.com.
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